Bankruptcy court judge approves request by Hostess Brands Inc. to begin winding down operations
18,000 workers nationwide to lose jobs
Last Updated: 383 days ago
WHITE PLAINS, N.Y. - A bankruptcy court judge has approved a request by Hostess Brands Inc. to begin winding down its operations.
The ruling came Wednesday after the maker of Twinkies and Ding Dongs failed in last-ditch negotiations to end a strike by its second-largest union.
Hostess now has the green light to terminate the jobs of its 18,000 workers, including 850 in Indiana, and sell off its brands.
In court Wednesday, Hostess said it needed to begin the liquidation process quickly to take advantage of outside interest in its brands, which a banker said could fetch up to $2.4 billion. That's about how much they generate in annual sales.
Hostess, based in Irving, Texas, has been spending about $1 million a day in payroll without any income since it halted operations last week.
Copyright 2012 Scripps Media, Inc. The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.